February 27, 2019
Best Buy Feb. 27 reported a 2.7% increase in fourth quarter (ended Feb. 2) entertainment comparable store sales, which was down from a 16.8% increase during the previous-year period.
The entertainment segment, which includes DVD/Blu-ray Disc movies, video game hardware and software, books, music CDs and computer software, generated 10% ($1.34 billion) of Best Buy’s $13.4 billion in domestic revenue. That compared to $1.39 billion (10%) during the previous-year period.
Internationally, same-store entertainment sales dropped 2.5% compared to a 11% increase last year. Entertainment represented 9% ($117 million) of international revenue, compared to $123 million (9%) last year.
Overall, the nation’s largest consumer electronics retailer reported $735 million in profit, which was up from $364 million in net income during the previous-year period. Revenue dipped less than 4% to $14.8 billion compared to $15.3 billion last year.
The company generated comparable sales growth across multiple categories, with the largest drivers being wearables, appliances, smart home and gaming. These drivers were partially offset by a decline in the mobile phone category.
Indeed, Best Buy closed 257 branded mobile and 12 large format stores in 2018.
“We are very proud of the financial results we have just delivered,” CEO Hubert Joly said in a statement. “For the fourth quarter, we reported a 3% increase in our comparable sales, on top of 9% comparable sales growth last year. For the full year, our comparable sales grew 4.8% and our [earnings per share] increased more than 20%.”